Flexible Budget	Activity Variances	Planning Budget
Customers served (q)	36,000		33,000
Revenue ($4.80q)	$172,800	$14,400 F	$158,400
Expenses:
Wages and salaries ($36,900 + 1.60q)	94,500	4,800 U	89,700
Supplies ($0.90q)	32,400	2,700 U	29,700
Insurance ($13,300)	13,300	0	13,300
Miscellaneous Expense ($6,300 + $0.40q)	20,700	1,200 U	19,500
Total expense	160,900	8,700 U	152,200
Net operating income	$11,900	$5,700 F	$6,200

 

 

1. Explain the budgeted income statement.
2. Outline how you would do annual budgeted financial statements.
3. Analyze the difference between a static budget and a flexible budget, including the importance of each.
4. Evaluate the importance of reading and correctly interpreting budgeted financial statements.